Today, many European countries (Germany, the Nordic countries, Italy) seem equally as developed as their western counterparts (UK, France, Spain), despite the difference of many centuries of colonizing vast swaths of the Earth.

How was it that the non-colonialist countries of Europe managed to keep up with the rapid pace of development in the colonialist countries, even defeating them in warfare at times, throughout three centuries of colonial expansion? Was it mostly due to simple proximity/trade to the colonialist powers, or was there more at play?

I ask for examples which predate the 19th century, because of course many of them (i.e. Germany, Italy) did indeed gain colonial possessions in the 19th century.

I am particularly curious about the Nordic countries. The Holy Roman Empire was the most powerful force in Europe (besides the Byzantine Empire) throughout most of the Middle Ages, and the Italian states had the Renaissance and much of the Mediterranean, so that must at least partially explain their situations. Most of Eastern Europe gives me the impression of lagging behind in their productive forces during this period, although I'd be delighted to hear examples on the contrary.